SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Riddhi Steel & Tube Ltd

BSE: 540082 NSE: ISIN: INE367U01013
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Riddhi Steel & Tube Ltd belong to?
Riddhi Steel & Tube Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Riddhi Steel & Tube Ltd a good quality company?
Riddhi Steel & Tube Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Riddhi Steel & Tube Ltd undervalued or overvalued?
Riddhi Steel & Tube Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 42.62 15.36
Price to Book 4.88 0.81
Price to Sales 0.83 0.14
EV to EBITDA 17.73 8.18
Q.4 Is Riddhi Steel & Tube Ltd a good buy now?
Riddhi Steel & Tube Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd revenue growth is 19.4% for FY-2025, which is above its 5-year CAGR of 6.04%, indicating faster growth.

Q.2 Gross Profit margin of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.7% for FY-2025, which is in line with its 5-year median of 5.67% indicating stable margins.

Q.4 Net Profit Margin of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Net Profit Margin is 1.94% for FY-2025, is above its 5-year median of 1.12%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.4 2.6
Operating Profit Margin (%) 5.7 5.67
Net Profit Margin (%) 1.94 1.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Return on Asset is 3.82%, which is above its 5-year historical median of 1.82%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Return on capital employed is 11.58% for FY-2025, which is above its 5-year historical median of 9.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Return on equity is 12.71% for FY-2025, which is above its 5-year historical median of 6.7%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Cash conversion cycle is 129 days, in line with its 5-year historical median of 129 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.97 1.73
ROE (%) 12.71 6.7
ROCE (%) 11.58 9.47
Cash Conversion Cycle 129 days 129 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Debt-to-Equity ratio is 2.09, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Riddhi Steel & Tube Ltd?
Riddhi Steel & Tube Ltd Debt to cash flow from operations is 10.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Riddhi Steel & Tube Ltd?

Q.1 Promoter shareholding and pledge status of Riddhi Steel & Tube Ltd?
Promoters hold 74.61% of the Riddhi Steel & Tube Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Riddhi Steel & Tube Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Riddhi Steel & Tube Ltd vs industry peers?
Riddhi Steel & Tube Ltd revenue CAGR is 6.04%, compared to the industry median CAGR of 7.56%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19.4 7.6
Gross Profit Growth (%) 30 19.3
Operating Profit Growth (%) 15.8 13.8
Net Profit Growth (%) 60 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.97 1.27
ROE (%) 12.71 8.04
ROCE (%) 11.58 11.28
Cash Conversion Cycle (days) 128.97 72

Valuation & price assessment

Q.1 Stock return of Riddhi Steel & Tube Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 89.29% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - 89.3% 117.3% 271.4%
Q.2 Valuation ratios of Riddhi Steel & Tube Ltd vs historical?
The current P/E ratio of 42.62 is higher than its historical median of 15.36, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 42.62 15.36 17.36
Price to Book 4.88 0.81 1.63
Price to Sales 0.83 0.14 0.74
EV to EBITDA 17.73 8.18 10.05

Check more companies

1. Welspun Corp
2. Shyam Metalics&Ener
3. Sarda Energy&Min.
4. Godawari Power & Isp
5. Ratnamani Metals
6. Jindal Saw
7. Gallantt Ispat
8. Usha Martin
9. NMDC Steel
10. Jayaswal Neco Inds

Check trending companies

1. Bajaj Holdings & Investment Ltd.
2. Life Insurance Corporation of India
3. K.P.R. Mill Ltd.
4. Aditya Birla Sun Life AMC Ltd.
5. Aditya Birla Capital Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×